The attorneys at the Hughes Law Firm write about estate planning, estate wills, estate trusts, estate taxes, power of attorney, revocable and irrevocable living trusts, probate avoidance, and more!

probate

03/26/2015

Most of us don't. However, if a close friend suddenly passes away, this shocking and unexpected event might make you think about death and how fragile our time here really is. Experts say that some people don't have simple wills. There are many reasons people put off estate planning.

Have you signed your will? Is it one of those New Year’s Resolutions that you just have not yet taken up? If signing your own will is still on your “to do” list, then you are in not alone.

I just don't have the time. This is kind of a lame excuse … everybody’s busy. However, there are some things that are so important you have to take the time to get them done—like estate planning. At the head of this important task are naming your beneficiaries and an executor.

I don't want to think about dying. Who does? The original article says this is one of the most common reasons people don't create an estate plan with an estate planning attorney. Do this right now while you’re healthy. Think about who will get custody of your minor children, who gets your money, and your funeral arrangements. Some of us don’t like flossing or balancing our checkbook, but it’s the smart thing to do and saves us, let alone our families, avoidable headaches in the future.

I don't understand it.Ok, that sounds like a good reason. But this is no reason to neglect your estate planning. An attorney can examine your estate and educate you on your options. Ok, you may not need a complicated trust, but you certainly should have a will. Do not forget your legal planning for incapacity, too. What if you become incapacitated from an accident, who will pay your bills and make key decisions regarding life support? This really should be simple enough to answer with the help of an attorney.

I don't really have much of an estate. It may not be just about money. Your Colorado estate planning attorney can help you with all of the issues. Without a will or a named beneficiary, the Colorado Probate process can be a nightmare for your survivors.

Make sure you prepare your estate planning as soon as possible.

Contact one of the experienced Colorado estate planning attorneys at The Hughes Law Firm when you are ready to take the next step in planning for your family’s future. Our Colorado Probate attorneys can also be of assistance to you if you are preparing to initiate the Probate process for a loved one who has passed. Call (303) 409-3547 to learn more.

03/20/2015

The fight over the multimillion-dollar estate of renowned plastic surgeon and burn treatment pioneer Richard Grossman, who died last March at age 81, is headed for trial this year amid new allegations against his widow. Previously, in a lawsuit filed in August, the doctor’s sons, Peter and Jeffrey, accused the doctor’s fourth wife, Elizabeth Grossman, of manipulating her ailing husband into leaving an inheritance believed to be worth tens of millions of dollars to her and nothing to his two children. Then, on February 10th, a new complaint against Elizabeth Grossman and her attorney, Peter Wakeman, alleged that the two interfered with a contract directing that Richard Grossman’s estimated $20-million Hidden Valley estate in Thousand Oaks, known as Brookfield Farms, go to his children and grandchildren. Instead, the lawsuit states, Elizabeth Grossman redirected the property to herself. The suit also accused the woman and her attorney of committing elder financial abuse and seeks an unspecified amount in damages.

A recent article in the Thousand Oaks (CA) Acorn, titled “Battle over Grossman estate intensifies,” describes the contentious fight over a noted physician’s estate between his wife and his children from a previous marriage. With all of the assets going to the wife, the children assert that the doctor had advanced dementia and wasn’t able to make his own decisions.

The Grossman fortune was a result of his position as the founder of the Grossman Burn Center in Los Angeles. His medical center was one of the first to use a hyperbaric chamber to prevent infections in burn victims and speed burn recovery. Grossman retired from his practice in 2013 and died a year later. Now the lawyers for his children and his widow are disputing the doctor’s true intentions for his estate.

The children are claiming that the doctor and his wife had a prenuptial agreement when they married in 2000 that kept the property of each separate. The children are seeking to keep her from selling Grossman’s main asset, Brookfield Farms. They believe that the doctor wanted to keep the estate in his family. They want the estate to be distributed in trust for the benefit of the doctor’s grandchildren and one of his children suffering from a neurological condition who needs family support to care for him.

Whether you own a million-dollar farm or a modest home in the suburbs, avoid fights like the Grossmans’ and seek out the assistance of an experienced Denver estate planning attorney to make sure that your intentions are clear and carried out.

To learn more about Colorado Probate and Colorado Estate Planning call The Hughes Law Firm today at (303) 409-3547.

03/09/2015

The comedian Robin Williams hadn't been deceased for long when a fight erupted over some of his belongings. Williams' third wife and his three children from a previous marriage landed in court with a dispute over personal items, including Williams' watches. When assets are being passed on to children from a prior marriage, trouble can quickly ensue. Having a clear will and a sound trust can help ease tensions. But experts are advising people who remarry to have even stronger asset defenses—prenups and even postnups that are highly detailed and clearly laid out. The message from the experts is simple: You can never have too many documents backing up your intentions.

"The mess comes when you don't have proper estate planning," according to an attorney interviewed in a recent article titled “Remarrying? Shower kids with love, and a good prenup” from CNBC. An important tool in that toolbox, he says, is a prenup. A prenup details how assets would be split up if the marriage fails or a spouse dies. A spouse who wants to protect assets in a second marriage should also talk to an experienced estate planning attorney about trusts.

One of the best features of a prenup is that it can protect nearly every kind of asset an individual may want to pass along—this includes art collections, cash, and the family business. Without a prenup, it’s easier for a spouse to obtain some unintended part of the estate if you die. A prenup should be airtight to avoid legal issues. Although Robin Williams had a well-thought-out estate plan when he passed, which included a prenup and a trust for his children, some of his personal items were left out of the documents. This is causing a fight between his spouse and his children.

Documenting every asset is necessary. Lists of paintings owned before a second marriage can be kept in multiple places, which helps you show evidence of your intentions … and the more detail, the better! Once a prenup is signed, it’s nearly unbreakable and is typically accepted by the courts.

The original articlegives us some guidelines to keep in mind and to discuss with your attorney:

Both you and your spouse should understand the prenup, and both should be represented by attorneys.

Negotiate and sign the prenup prior to your wedding. A common mistake is signing the prenup the day of the wedding!

After you're married, be careful not to commingle all assets because the source of funds—like joint or separate accounts—used to buy an asset will decided who owns it.

The more communication, the less misunderstanding. Conduct a family meeting and discuss your intentions for your estate.

Read about more tips in the article and talk to a Colorado estate planning attorney sooner to help avoid costly court battles later. To get in touch with one of the Colorado estate planning attorneys at The Hughes Law Firm call (303) 409-3547 or click here to register for one of our free seminars titled, “How to avoid Probate” for additional information on a number of important Colorado estate planning topics.

03/03/2015

There doesn’t appear to be much doubt that Robin Williams conveyed his estate plans to his family in the years before his tragic suicide last summer. His full estate was left to a trust, which his three adult children will inherit. There was a prenuptial agreement between Williams and his wife, Susan Schneider Williams, whom he married in 2011. And as part of his trust, another trust was established to support his wife in the event of his death. Williams also appears to have done his best to divvy up his personal possessions without resorting to listing each and every one. All clothing, jewelry, and photos he owned prior to his 2011 marriage to Schneider Williams? They go to the children. His awards and other career “memorabilia”? The kids get them. His possessions at a home he owned in Napa? The three children again. The Marin County home Robin Williams shared with his wife? Schneider Williams. The possessions in that residence? Well, excluding all of the above, those are hers. So where does that leave the tuxedo Williams wore at the couple’s wedding? Or his many collections of things like graphic novels, walking sticks, Japanese anime, and movie posters?

Well, in this case – court. In just four months after the comedian’s death, litigation has begun between Williams’ three children and his third wife. The recent slate.com article, titled “Robin Williams’ Family Is Like Yours” says that a good talk with the family is the best way to avoid post-death struggles over your estate after you pass away. Sit down with your loved ones and tell them about your will, and how you’d like to see your belongings divided up. Convey some life values while you’re at it. You can even ask for their input.

After the death of a well-loved parent, family squabbles can erupt over vacation homes that have been in the family for generations—or things with much less value. These battles are often over items that aren’t financially worth an hour of the most inexpensive lawyer’s time!

As for Robin Williams’ possessions, the lawyers for Schneider Williams referred to the items as “knickknacks,” while, in their counter-filing, Williams’ children claim these possessions were “carefully amassed.” They say that their stepmother of less than three years had the possessions quickly appraised, and was motivated by greed.

The original article explains that even worthless possessions can become proxies for personal battles that are, sadly, never resolved. Second and third marriages—like those of Robin Williams—make things more complicated, but any family can have such headaches, too.

Speak with an experienced Colorado estate planning attorney and get your plan in order. Then talk to your heirs so they know what to expect and are ready to deal with it.

To learn more about the powerful estate planning tools that are available to you and your loved ones, call (303) 409-3547 today to speak with one of the experienced Colorado estate planning attorneys at The Hughes Law Firm. You can also click here to register for one of our free seminars titled, “How to avoid Probate” for additional information on a number of important Colorado estate planning topics.

01/13/2015

No one really wants to talk about death. But physical death is inevitable, for everyone.

The death of a spouse, family member or close friend brings a deep sadness as the complications of grieving begin. At such a difficult time when you are experiencing the emotional, mental and physical lethargy that comes with such an experience of loss, there is the added strain of having to be mentally centered to make, what seems to be, endless decisions such as: Notification of family and friends, taking care of funeral arrangements, scheduling religious visitation, making arrangements for out-of-town guests, ordering death certificates, and handling immediate financial issues.

When a loved one dies you have to remember IRS deadlines, Social Security Administration requirements, compliance with state laws, and dealing with other grieving family members. There’s also the chance you might have some relatives who feel entitled to more or different assets.

To make this time easier for all involved, it’s critical to plan some of the issues related to death far in advance with some contemplation to make everything go as smoothly as possible when a loved one passes away.

Although it’s not easy, discuss the issue of death with your family and determine what each person's end of life wishes are. Experts say that it’s sometimes more comfortable to do this when someone outside the family has died. You want to build a foundation for a smooth transitional experience to make things be as painless and well-organized as you can for your family—as well as for yourself.

Get to know the inheritance laws in your state, and don't assume that, if you have a will, your wishes are set in stone. Some idea of how property passes on death in the state where you live will be helpful. The laws governing property division can get tricky, so consult with a Colorado estate planning attorney. Select an estate planning attorney who’s experienced in Colorado probate, estate and tax planning, and head to the meeting prepared with your questions.

Your attorney will ask you questions about your real property, personal property, and all other assets, guardianship decisions, medical preferences, end of life bequests, and more. You’ll talk about a will, the possible need for a trust, and deciding on an executor of your estate.

Remember that all of your life insurance, annuities, 401(k), 403b, and IRAs are passed to your named beneficiaries, not through your will in probate. It’s important that your beneficiary designations are current and accurate. Speak with the administrators of the investments and get a copy of the beneficiary assignments currently on file­—if you need to update or change your beneficiaries, do it right away! Once you’ve submitted the changes, be sure to request confirmation of the change and keep it with your records. Remember that the release of money to the designated beneficiary is contingent on producing an accurate and legible death certificate.

Start a joint checking account with the executor you select. This will give them funds that may be required to pay for funeral expenses, travel for family members, paying for people to help with immediate needs, and bills that come due while waiting for accounts to be released and settlements to be completed.

Set up a secure filing system. This needs to be easily accessible and should contain important documents like birth certificates, Social Security numbers, military discharge papers, marriage license (or a copy of your divorce decree if applicable). You should also provide the location of the safe-deposit box keys, a list of benefits from your current or past employer (such as a benefits brochure), the contact info for your estate planning attorney, CPA, financial adviser, and insurance agent.

Think through what would happen to your investment portfolio if your spouse, child or significant other isn't able to keep up with the activity or isn't knowledgeable to interview and hire a good person to get into the portfolio accounts due to the absence of passwords.

Don’t allow your estate to be drained because it’s not getting proper attention. Be prepared and consider carefully who will handle this for you. Work with an experienced Colorado estate planning attorney who can coordinate this essential planning.

To learn more about these important Colorado estate planning matters, call (303) 409-3547 to get in touch with one of the Colorado estate planning attorneys at The Hughes Law Firm. You can also click here to register for one of our free seminars titled, “How to avoid Probate” for additional information on the powerful estate planning tools that are available to you and your family.

12/10/2014

The legal dispute surrounding the roughly $200 million estate of the late Charlotte developer Henry Faison has been resolved, with his company winning forgiveness of more than $100 million in loans he’d extended to it. The assets were in dispute because Faison tried to update his will so that a large portion of his wealth would go to a charitable foundation rather than to his company, Faison Enterprises. Despite a trail of emails and memos outlining that intention, he didn’t sign the legal documents making it official before his sudden death in 2012 at 78.

In North Carolina, a written will isn’t valid unless it is handwritten by the decedent or is signed by that person and witnessed by two uninterested individuals.

In this recent court case filed by Faison's sons, Jay and Lane, they asked the court to force Henry's company to allow the assets, including $105 million in loans extended by Faison, to pass to his foundation. The dispute centers on Henry's June 2000 will, which left the residuary of his estate to Faison Enterprises.

However, Henry changed his mind in summer 2012.

As The Charlotte Observerdetailed in a recent article titled "Settlement reached in lawsuit over late developer Henry Faison’s estate," Henry decided to leave most of his personal wealth to a charitable trust he planned to name after his dog, Skeebo. This change would avoid about $110 million in federal estate taxes and allow the foundation to support conservative causes, according to court papers. But Henry passed away right before he could sign the will or the documents creating the trust.

Faison Enterprises argues that the sons are proposing a type of “post-mortem tax and estate planning” prohibited by state law. The company’s lawyers said Henry repeatedly declined to sign a 2012 draft will—even though he had it for more than two months before he died. They said his 2000 will should be followed.

The original articlereported that the parties came to a settlement and that agreement was incorporated into an order from the Superior Court. The judge directed that the loans be distributed to Faison Enterprises, which means the company won’t have to repay them. He also required Jay and Lane Faison, co-executors of their father’s estate, to refund $1 million in interest the company paid on the loans and pay the company’s legal fees up to $2.5 million. The judge’s order also permitted Faison Enterprises the option to purchase certain properties owned by the estate.

After all legal fees, distributions and other expenses are satisfied, the remainder of the estate goes to the Skeebo trust.

This is a pretty straightforward situation that went sideways in a hurry because the decedent failed to make his intention known by signing a valid will and have his estate planning documents, such as a trust here, in order. You can avoid this type of prolonged and heated litigation by speaking with an experienced Colorado estate planning attorney. Get your business succession plan set and your personal asset distribution strategy defined to prevent your heirs and business associates from fighting in court after you're gone.

Call (303) 409-3547 to speak with one of the experienced Denver estate planning attorneys at The Hughes Law Firm and learn more. You can also click here to register for one of our free seminars titled, “How to avoid Probate.”

10/20/2014

It's no secret that Rivers hoped for a funeral that rivaled her lifestyle: big and over the top. She outlined her wishes in her 2012 book, I Hate Everyone…Starting With Me, writing: "When I die, I want my funeral to be a huge showbiz affair with lights, cameras, action…I want Craft services, I want paparazzi and I want publicists making a scene! I want it to be Hollywood all the way. I don’t want some rabbi rambling on; I want Meryl Streep crying, in five different accents. I don’t want a eulogy; I want Bobby Vinton to pick up my head and sing “Mr. Lonely.” I want to look gorgeous, better dead than I do alive. I want to be buried in a Valentino gown and I want Harry Winston to make me a toe tag. And I want a wind machine so that even in the casket my hair is blowing just like Beyoncé’s."

Rivers' income from book royalties, appearance fees and salary at E! Television, plus sales of her QVC merchandise may have exceeded $1 billion. So, Joan could afford the big farewell.

The article mentions that Joan would have liked the fact that the expenses associated with her funeral are tax deductible for federal estate tax purposes. However, she would say, "Can We Talk?" about her estate being reduced by federal estate taxes in the first place. No one is certain of the exact amount of Rivers’ fortune, but even with estate planning her estate is probably going to owe a chunk of change to the government.

If a loved one passes this year, the exemption is $5,340,000, which means federal estate taxes are due on estates over that amount. But remember, the estate may claim some deductions against the gross estate, one of which is for funeral expenses. There is no dollar limit on the amount you can claim, but the deduction is limited to an amount “allowable under local law.” Forbes notes that this basically means that you cannot claim more in deductions than you can claim in assets. Deductible expenses in this area include funeral home and burial costs, as well as church services.

Remember you may only claim the deduction on the federal estate tax return for funeral expenses—not on your personal income tax return. Talk with a Colorado Probate attorney at The Hughes Law Firm by calling (303) 409-3547 to learn more.

10/16/2014

Can you bequeath your iTunes collection in your will? Does anyone know you have Bitcoins or money in a PayPal account? If you’ve accumulated virtual wealth in a massive multiplayer online game is that part of your estate and can you be cashed out? Can loved ones get copies of your Facebook photos and videos? What happens to your wedding videos, holiday snaps, data, email or social media accounts? More importantly, what do you want to happen? Do you want them archived, deleted, passed on?

A recent Smart Company article, titled "The business of digital life and death," reports that 70% of 65-74 year-old Americans are on Facebook, and there are 30 million accounts that belong to individuals no longer alive. A growing concern among those wishing to properly manage their estate is "digital death," which questions what is an asset or special relationship—and how to balance privacy and security with passing on relevant information. The original article cites several factors in dealing with digital assets. For example, there are no international standards on digital assets or for how to address them via estate planning.

Again, social media has not been a burning issue in estate planning as of yet; however, as younger generations start to look at planning for the future, it will become more relevant as it will be more common and because the legal treatment of digital assets after death is clearly defined.

It seems every social media platform has a different approach to dealing with the death of one of its users. Facebook protects the privacy of the deceased by securing the account and permitting a family member to request the account be removed or memorialized.

In an attempt to balance sharing and privacy, Facebook has introduced a Look Back feature that can create a video of favorite moments that people are able to view but not share. The original article notes that Twitter is open to dealing with an immediate family member or estate representative to deactivate an account. Google developed an inactive account manager. This gives an individual access to your Google account if you die. In addition, it allows you set up a deadline in the event that you do not use your Google account for a period of time. Google will then notify and allow the person you have named to access select parts of your account.

In an attempt to prevent illicit use of real accounts, social media platforms are typically moving to policies that validate family members with certified copies of death certificates, so that a loved one can account for those assets and close the account. Despite clear instructions and policies about digital closure, the original article warns that it can be a laborious task. Work with your estate planning attorney to get the most up-to-date information on digital assets and how to coordinate them with your estate planning documents.

If you would like to learn more about this, or any other estate planning matter, call (303) 409-3547 today to speak with one of the experienced Denver estate planning attorneys at The Hughes Law Firm or click here to register for one of our free seminars, “How to Avoid Probate.”

10/10/2014

Losing a loved one is a difficult experience. Yet, during this time, you must complete a variety of tasks and make important financial decisions.

Have you lost a loved one? If yes, then you will want to read a recent article in the Des Moines Register titled "Important financial steps to take following a death." The article contains a helpful checklist to help guide you through the matters that will need attention.

Here are some of the initial tasks:

Contact family members, friends, and clergy;

Make funeral, burial, or cremation arrangements (there may be final wishes detailed in his or her will or estate planning documents);

Notify family and friends of final arrangements;

Contact the deceased's workplace, union, and professional and volunteer organizations;

Talk to your employer about bereavement leave;

Place an obituary in the local paper;

Notify your Estate Planning Attorney; and

Obtain certified copies of the death certificate (needed when applying for benefits and settling the estate).

You should also take a look at your loved one’s financial records to see if you can locate his or her estate planning documents. While you are at it, be sure to collect deeds, insurance policies, titles, marriage certificate (if relevant), birth or adoption certificates of children, and military discharge papers.

Report the death to the Social Security Administration. If your loved one was receiving benefits via direct deposit, ask the bank to return funds received for the month of death and after that to Social Security. Do not cash any Social Security checks received by mail, and return them ASAP.

The original article recommends making a list of assets and placing safeguards on them to protect any property. See to it that the mortgage and insurance payments are paid while the estate is being settled.

Within one or two months after death, you should meet with a Denver Probate attorney to determine if Probate is required. Call (303) 409-3547 to get in touch with one of the experienced attorneys at The Hughes Law Firm.

09/26/2014

Although it may not be pleasant to consider, it's important to have a plan in place for what happens to your children in the event of your death.

What a task to think about all of the details of making sure your children have the best care in the event you pass away suddenly and unexpectedly. Even so, a recent article in TheStreet, titled "How to Give Away Your Kids,"says that it is a discussion you must have. Due to the complexity of this task, the article explains that some families with young children will be "frozen in place" without making a decision.

When drafting your will, you have the option to select two different guardians. You can have a guardian for your child or children and a guardian for the property or the estate. In fact, they can be the same person if you want, but need not be. Typically, people choose two different individuals because the one who cares for the children might not be the person you would want to handle their inheritance. The two-guardians approach may require separate and distinct skill sets.

To minimize the risk, some choose to keep these roles separate. The best way to do this is by creating a trust.

If both parents pass away, usually all or most of their estate will pass to their children. This would be best done via a trust if the children are minors. By setting up a trust, you can be very specific regarding how the funds can be used for your child's care and education. The guardian of your child's property can also be an institution—it need not be a person. And that guardian is not required to live with your child. For example, you could name an older 19-year-old daughter legal guardian of a 13-year-old, but the 13-year-old could live with her grandparents while the 19-year-old is away at college.

Requesting an individual to be a guardian and to potentially “expand” their family is a significant financial obligation. Leaving enough funds to provide for the care of your minor children is another tough task. Consequently, a lot of people spend considerable time figuring out the estimated cost of their financial objectives. Oftentimes, these people evaluate their life expectancies and try to come to an appropriate level of life insurance and savings. The smartest thing to do is to talk to your estate planning attorney once a year or so to contemplate any changes in your life and lifestyle.

If you are ready to take the next step in planning for your family’s future, call (303) 409-3547 to speak with one of the experienced Denver estate planning attorneys at The Hughes Law Firm or click here to register for one of our free seminars titled, “How to avoid Probate.”